The price of the cryptocurrency Bitcoin is falling. There are several reasons for this: Investors want to anticipate further falling prices, which are blamed on the bankrupt crypto exchange Mt. Gox, the bad mood and, of all things, the police.
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Until 2013, streaming films and videos was not legally possible. But it was illegal, and on platforms such as Kinox.to and Movie2k.to, Internet users heralded the end of video and DVD rentals around the corner. Investigations and proceedings are still ongoing against those who illegally posted films online. In Saxony, for example, the authorities confiscated almost 50,000 from one of the operators of Movie2k.to in January. The accused, who has been charged with copyright infringement and money laundering since April, transferred them himself into a wallet provided by the authorities.
The Dresden Public Prosecutor’s Office did not comment on Capital’s request, but the crypto fan community is certain: the country has been selling Bitcoins since mid-June. And it is at least obvious. , an account called “German Government (BKA) has been holding around 5,000 Bitcoins since February. And that same account transferred 6,500 Bitcoins on June 19 and then sold 2,000 coins in four tranches via the recipient wallet. The BKA wallet still holds more than 43,000 Bitcoins worth 2.2 billion euros – a gigantic sum.
Shortly afterwards, the price of the cryptocurrency began to fall. The value corrected by six percent, and at one point it even fell below the 60,000 dollar mark.
But can such a small sale have such a big impact on the now $1.2 trillion asset class? Probably not. There are other reasons for the correction:
The former crypto exchange Mt. Gox announced that it would compensate former customers who were affected by a hack in 2014 starting in early July. A total of 140,000 Bitcoins are to be paid out. Many investors are apparently expecting that many of those compensated will cash out their Bitcoins immediately. Since the hack and the subsequent bankruptcy, the value has increased 140-fold. That would increase the pressure on the price, which could prompt some to take profits.
Pessimism is spreading
In addition, with the Bitcoin ETFs permitted in the USA at the beginning of the year, phenomena are now occurring that investors have previously only known from the stock market: Many ETFs have a so-called stop-loss order and are automatically sold when prices fall. This increases crashes, although the crypto scene had actually hoped for more stability from professional investors.
But that’s not the only thing that’s dampening the mood. Also in mid-June, the US Federal Reserve announced that it would only cut interest rates once this year. And Bitcoin is just as sensitive to interest rates as the US tech index Nasdaq, which fell almost in parallel with Bitcoin. Both are risky assets that benefit from a low interest rate environment. According to asset manager Coinshares, a total of $1.2 billion flowed out of crypto funds in the second week.
But it is unlikely to go down much further. The reasons for the price slide have now been priced in – now all we need is some good news.
Source: Stern
